Should You Buy Micron Stock Before Thursday? Here's What History and Wall Street Suggest

Micron Technology (NASDAQ: MU) may not get the headlines bestowed upon some other players in the technology sector, but make no mistake: the company is a crucial player in the space. Its flash memory and storage processors are critical components in the graphics processing units (GPUs) that underpin the artificial intelligence (AI) revolution.

Shareholders have profited handsomely as Micron leverages this opportunity, driving its sales and profits higher. This, in turn, has driven its stock price up 729% over the past three years (as of this writing) and 345% over the past 12 months.

The company faces a crucial test when Micron reports its fiscal 2026 second-quarter results after the market close on March 18. Given the stock's blistering run over the past year, should investors lay out their hard-earned cash to buy shares now or wait until after this critical financial report? Let's see what the evidence suggests.

Image source: Micron Technology.

Chip shot

Many view the dawn of AI in early 2023 as a once-in-a-generation opportunity, and Micron was well-positioned to profit. The company has long worked behind the scenes, providing a variety of semiconductors, including dynamic random access memory (DRAM), NAND flash memory, and high-bandwidth memory (HBM) chips -- and business is booming.

In its fiscal 2026 first quarter (ended Nov. 27), the company generated revenue of $13.6 billion, up 57% year over year and 20% sequentially, while its diluted earnings per share (EPS) of $4.60 surged 175%. Its cloud memory segment led the charge, growing 100%.

The surge in profits was fueled by significant margin expansion. Micron's gross margin of 56% jumped 1,760 basis points, from 38.4% in the prior-year quarter. The company's cash generation was equally impressive, with operating cash flow of $8.41 billion, which grew 160% year over year and 47% sequentially.

Management is predicting that the good times will continue. For the second quarter, Micron is guiding to revenue of $18.7 billion, representing 132% growth. The company's margin expansion is expected to continue, with its gross margin climbing to 67% at the midpoint of its guidance, driving diluted EPS of $8.19, up 481%.

Just this week, Micron announced it had completed the acquisition of an existing cleanroom from PSMC in Taiwan, which will be retrofitted to produce DRAM and HBM processors to meet surging AI demand.

Data by YCharts

The chart above illustrates Micron's stock price movements during the past three years. The purple circles with the letter "E" at the center show when the company reported its financial results. In the majority of these cases, or 67% of the time, the stock price rose as investors piled into the stock on the heels of its robust financial reports.

Is the stock a buy?

Wall Street is extremely bullish. Of the 43 analysts who offered an opinion thus far in March, 86% rate the stock a buy or strong buy, and only one recommends selling.

I generally stay away from date-driven stock purchases, focusing instead on the long-term opportunity and the trajectory of the business. Micron's recent results help illustrate why the ongoing demand for its AI-centric chips is expected to continue.

For investors looking to open a position in Micron stock or increase an existing one, now might be a good time. Despite its robust results and stellar outlook, Micron stock is selling for just 13 times forward earnings, well below its three-year average multiple of 38.

The evidence suggests that concerns about ongoing demand for AI are unfounded, and most experts believe AI adoption is just getting started. Big Four accounting firm PwC estimates that AI could contribute as much as $15.7 trillion to the global economy by 2030.

Given the company's track record of growth, increasing sales and profits, and strong secular tailwinds, the evidence suggests that Micron stock is a buy.

Danny Vena, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.